Explaining Recent Modifications to the Treatment and Use of Repurchase Transactions

Autor:	John A. Ruddy, Murli Rajan, David F. Salerno
Rok vydání:	2015
Předmět:	Money market business.industry media_common.quotation_subject Financial market Accounting Repurchase agreement Debt Capital (economics) Business Financial accounting Database transaction Financial statement Finance media_common
Zdroj:	The Journal of Structured Finance.
ISSN:	2374-1325 1551-9783
DOI:	10.3905/jsf.2015.2015.1.045
Popis:	The research outlined in this article considers recent events that have transpired in the repurchase transaction market. In the United States, the Financial Accounting Standards Board (FASB) has changed the accounting treatment of repurchase transactions. Across the globe, regulators have changed the treatment and capital required for financial institutions to participate in repurchase transactions. The intended effect is clear: new rules treat repurchase agreements as debt and require participating institutions to provide additional financial statement disclosures about repurchase agreement activities. What impact will the stricter rules have on the repurchase transaction market? Federal Reserve data on the repurchase transaction market suggest that the recent changes have decreased repurchase market activity. Remaining questions for practitioners and theoreticians might include the effect that a smaller repo market might have on other credit markets as well as the financial markets as a whole.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::80db0a7c9a7fe9756ac85c9bb7d6c648 https://doi.org/10.3905/jsf.2015.2015.1.045 Zobrazit plný text záznamu